US Ex-Im Bank has renewed its offer to reduce the bank’s exposure fee by one third on asset-backed financings of new US-manufactured large commercial aircraft for buyers in countries that sign, ratify and implement the Cape Town Treaty and the related aircraft protocol. The offer now covers approvals issued through September 30, 2006.
In addition, Ex-Im’s board of directors voted to invite its counterpart European export credit agencies to work with it to develop a common approach to offering improved financing terms to airlines based in countries that ratify and implement the Cape Town Treaty, and offered to consider transitioning to that common approach prior to the September 30, 2006 expiration of Ex-Im Bank’s current improved terms.
Besides the US, five other nations to date have ratified the Cape Town Treaty. They are Ethiopia, Nigeria, Oman, Pakistan, and Panama.
Ex-Im Bank’s offer enables eligible foreign buyers to receive an Ex-Im exposure fee of as low as 2%, a one third reduction of the current minimum 3% exposure fee on asset-backed financings of new large commercial aircraft. More favourable financing terms also apply to asset-backed financings of spare engines to such buyers.